Nomis
Intelligent Pricing for Better Banks

White Paper

Rethinking Promotions to Build a Sustainable Deposit Portfolio

Canadians’ current tendency to save less and borrow more has banks are struggling to re-work their lopsided balance sheets to maintain the liquidity needed to meet capital ratios required for lending. Many banks offer aggressive promotions to drive an influx of deposits, but these promotions are having the opposite of the desired effect.

The white paper “Is Promotional Pricing Destroying Deposit Portfolios?” explores how to break the cycle of volatility that is becoming a crisis for deposit managers and how to weed out promotions that:
  • Limit the effective allocation of resources
  • Teach customers to be promiscuous with their deposits, rather than creating long-term relationships
  • Make it difficult to increase stable deposit balances and foster long-term portfolio growth.